“An idea that is developed and put into action is more important than an idea that exists only as an idea.” – Gautama Buddha
You’ve noticed a great need in your community (e.g., teen unemployment, crime, obesity, etc.) and have come up with a great idea to address that need or would like to implement an existing program in your neighborhood. As you proceed, make sure that you begin with a firm foundation in creating the organization through which your idea will be implemented. If you plan to, for example, raise funds from outside sources, the decisions made at this stage will determine where you can go to raise needed funds.
Organization Type – There are two primary choices for organization type: for-profit and non-profit. As the names suggest, each type is driven by its primary objective. For-profit organizations exist to maximize profits (revenues minus expenses) for its owners and/or shareholders. In contrast, non-profits are not PRIMARILY motivated by profits, but rather by fulfilling its charitable mission. However, there are incidences where you can find both types of organizations mutually benefitting each other (e.g., a for-profit organization creating a related non-profit organization to perform charitable work such as the Ford Foundation). Keep in mind that foundations and some government programs can only award grants to tax-exempt non-profit organizations (we’ll talk about becoming tax-exempt soon).
Organization Name – It has been said that “words have meaning and names have power”[1]. Don’t underestimate the importance of choosing a name for your organization that communicates who you are, what you do, and/or who you serve (e.g., American Cancer Society). In choosing a name, you will need to make sure that the proposed name is not being used by another organization. Various sources you can use to check on the availability of a name include your secretary of state and/or your local registar.
In order to become an official organization, you would submit an application or articles of incorporation to your secretary of state or similar entity. In addition, you may be required to apply for a business license from your local jurisdiction. Check with your state and local governments for their specific requirements for creating your organization.
Be strong and be blessed!
[1] – Author unknown (Source: http://www.quotegarden.com/names.html)
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